Re: Bhutto wants USA to Threaten Pakistan’s Aid.
Deposit taxes into Government treasury? Well, that is the difference from old days and today :biggthumb In the past your duty would have been to collect taxes from people’s salary and deposit major portion of that into the accounts of Big Wigs (after cutting a portion of that if you wanted to for yourself), who would have passed a big portion of that to their superiors, and so on, until in the end a portion of that would have reached NS or BB who would have used that to buy dollars from open market and transfer those dollars to their foreign accounts. For khana-purri, country would have seen nominal increases in taxes. That is why Federal tax collected in Pakistan was so low and increasing nominally before Musharraf came to power:
Than Musharraf came to power and even though many sanctions started due to martial law plus affect of nuclear test sanctions was also felt (test related sanctions started late 1998, early 1999), this is how federal tax collection is recorded (that happened even though inflation was lower compared to Bhutto, Zia, NS or BB period and stagnant exchange rate with respect to dollars …
During Bhutto period Rupees devalued by around 100 percent.
During Zia period Rupees devalued by around 90 percent.
NS and BB period saw Rupees devalued by 300 percent.
During Musharraf period of 8 years, Rupees devalued by 13 percent.
Musharraf rule: Prices due to inflation increased by around 60 percent in last 8 years, and wages increased by over 350 percent during last 8 years. Tax collection increase is phenomenal furing Musharraf rule.
Here is how Pakistan federal tax collection is recorded (the increase is obvious, even though during last 8 years, government reduced tax rate substantially):
Source: http://www.sbp.org.pk/ecodata/tax.pdf
Before Musharraf took over:
1996-1997: Rs 282 billion
1997-1998: Rs 293 billion (increase of 4 percent)
1998-1999: Rs 308 billion (increase of 5 percent)
After Musharraf took over:
1999-2000: Rs 347 billion (increase of 13 percent)
2000-2001: Rs 392 billion (increase of 13 percent)
2001-2002: Rs 404 billion (increase of 3 percent)
(Affect of 11-9-2001 is obvious)
2002-2003: Rs 460 billion (increase of 14 percent)
2003-2004: Rs 520 billion (increase of 13 percent)
2004-2005: Rs 590 billion (increase of 14 percent)
2005-2006: Rs 713 billion (increase of 21 percent)
2006-2007: Rs 846 billion (increase of 19 percent)
During first 3 months of 2006-2007: tax collected was Rs 183 billion, whereas during first 3 months of 2007-3008: tax collected is Rs 205 billion, and increase of over 12 percent, a healthy increase for earlier months, as most tax are collected during later months of financial year.
Note: When Musharraf came to power in 1999, Pakistan Federal tax collection was 5.7 billion dollars and GDP was 62 billion dollars (@ Rs 54 to a dollar, 1999 exchange rate).
For year 2006-2007, Pakistan Federal tax collection was 14 billion dollars and GDP was 147 billion dollars (@ Rs 60.5 to a dollar, 2007 exchange rate).
Obviously, what Bhutto is doing, she is doing so that she again get chance to loot and plunder a more richer country, that Pakistan is today. She is desperate and thus calling her Master (‘Aqqa’) in USA to facilitate her loot and plunder Pakistan. Thanks Allah, days of Bhutto and NS is over in Pakistan and InshaAllah would never return.